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Pallant House Gallery __ The Economic Contribution of Pallant House Gallery 16 June 2016 Contents 5. Economic Model ............................................................................... 20 5.1 Additionality Analysis .......................................................................... 21 1. Executive Summary ........................................................................... 3 5.2 Economic Multipliers ........................................................................... 23 1.1 Growing Organisation ........................................................................... 3 5.3 GVA and FTE Conversion .................................................................. 23 1.2 Dedicated Audience ............................................................................. 3 5.4 Economic Modelling Results ............................................................... 24 1.3 Overall Economic Impact ..................................................................... 3 5.4.1 Audience Analysis ............................................................................... 24 1.4 Expansion since 2008 .......................................................................... 4 5.4.2 Organisation Analysis ......................................................................... 25 2. Introduction ........................................................................................ 5 5.4.3 Overall Assessment ............................................................................ 25 2.1 Methodological Overview ..................................................................... 5 6. Comparison with 2008 Study ........................................................... 26 2.2 Report Overview ................................................................................... 5 6.1 Number of Annual Visitors .................................................................. 26 3. Organisational Overview ................................................................... 7 6.2 Visitor Behaviour ................................................................................. 26 3.1 Stakeholder Views ................................................................................ 7 6.3 Pallant House Gallery Employment .................................................... 27 3.2 Wage and Supplier Spending by Pallant House Gallery ...................... 8 6.4 Staff Spending .................................................................................... 27 3.3 Wage and Supplier Spending by Pallant Bookshop ............................ 8 6.5 Visitor Spending .................................................................................. 27 3.4 Wage and Supplier Spend by Pallant Restaurant and Café ................ 8 6.6 Origin of Visitors .................................................................................. 27 3.5 Total Wage, Supplier Spending and Organisational Employment ....... 8 6.7 Gross Economic Impact ...................................................................... 27 3.6 Staff Behaviour ..................................................................................... 9 6.8 Summary: 2008 Comparison .............................................................. 28 4. Visitor Survey ................................................................................... 10 4.1 Motivations for Pallant House Gallery ................................................ 10 4.2 Behaviour of Gallery Visitors .............................................................. 11 4.3 Origin of Visitors ................................................................................. 12 4.4 London Visitors ................................................................................... 14 4.5 Background of Visitors ....................................................................... 14 4.6 Visitor Spending ................................................................................. 15 4.7 Seasonality Analysis .......................................................................... 17 Page 2 of 28 1. Executive Summary 1.2 Dedicated Audience Pallant House Gallery has received national and international acclaim, which Pallant House Gallery is not only an internationally significant cultural institution has helped to build a loyal audience that travel significant distances, spending and socially engaged organisation, it is a driver of increased economic activity. considerable sums in the local economy. Some of the characteristics of this This increased economic activity is generated through: audience are: — The expansion of Pallant House Gallery as an organisation, in terms of — 75% of visitors cite the temporary exhibitions programme as the main reason supplier and wage spending, as well as employment. for their visit. — The cultivation of a robust audience following that is willing to travel — 65% travel only to see Pallant House Gallery – not as part of a broader significant distances to visit the gallery and which spends considerable sums holiday or to see family and friends. in the local economy. — 13% stay overnight. The combination of this growing organisation and dedicated audience creates — 64% come from outside West Sussex. the economic impact of Pallant House Gallery, which we find has impressively increased since it was previously reported upon in 2008.1 — 2% are international visitors, generating around £82,000 in exports annually from their spending in association with Pallant House trips. 1.1 Growing Organisation — Visitors spend on average £68.63 during their trips to Pallant House Gallery The continued growth of Pallant House Gallery as an organisation means that it – with over 60% of this spending going on consumption in the local economy now: of Chichester, not in Pallant House Gallery itself. — Spends £638,481 annually on the wages of workers based in Chichester and — Having analysed the spending profiles of visitors to the gallery for exhibitions £729,299 in the wages of workers based in West Sussex as a whole. at different times of year, we find that Pallant House Gallery attracts visitors — Contributes £405,844 to the economy of Chichester through spending on that are contributing significant sums to the local economy all year round. local suppliers and £427,458 across West Sussex as a whole. 1.3 Overall Economic Impact — Employs 67 people on a headcount basis and 47 on a Full-Time Equivalent (FTE) basis. These figures include the gallery, bookshop and restaurant – We have effectively developed two economic models for this project: one that the same organisational definition as applied in the 2008 study. replicates that methodology used when Pallant House Gallery was last subject — Has employees based outside Chichester who spend approximately £97,000 to an economic impact assessment in 2008; one that follows the methodology annually during their time in Chichester. that BOP typically applies to economic impact assessment, which includes an additionality assessment. — 1 University of Portsmouth, Pallant House Gallery, Economic Impact Study 2008 Page 3 of 28 This additionality assessment takes account of how much economic activity These increased visitors are also spending more than visitors in 2008. The generated by the gallery in Chichester and West Sussex would have been previous economic impact assessment reported an average per trip spend of generated over these geographies even if the Gallery did not exist. In these £29.19, whereas we find that this is now £68.62. terms, we find that in 2015: The Gallery is also a larger organisation than it was in 2008. On a Full-Time — Pallant House Gallery generated £3,716,220 of additional revenue in Equivalent (FTE) basis, the number of staff employed by Pallant House has Chichester and £4,948,705 of additional revenue in West Sussex. increased by 24% since then. And now stands – when, as per the 2008 study, — Pallant House Gallery generated £1,672,886 of additional GVA in Chichester the gallery, bookshop and restaurant are all factored in - at 67 staff. and £2,119,038 of additional GVA in West Sussex. When we replicate the economic impact methodology used in the 2008 study, — Pallant House Gallery generated 77 additional FTE jobs in Chichester and we find that, in these methodological terms, the overall economic impact of the 96 additional FTE jobs in West Sussex. gallery upon Chichester has increased by 67% to around £4,453,000. While this 1.4 Expansion since 2008 approach does not include an additionality assessment, which is considered to be more robust, the significant increase in economic impact reported by applying an equivalent methodology to that used in 2008 is consistent with the Pallant House Gallery is attracting an increasing number of visitors. The most expansion over the intervening period of the gallery in terms of its local supplier recent financial year saw 63,711 visitors – a 5% increase on 60,457, the figure and wage spends, as well as the growth in number of gallery visitors and the for the 2007/08 financial year, the financial year closest to the last economic average spends per trip of these visitors. impact assessment. During 2007/08, it is likely that the number of visitors would have been assisted by the then relatively recent addition of a new wing, opened in July 2006. Cultural institutions typically experience upticks in attendance in the year following expansions. There has been some fluctuation in attendance at Pallant House Gallery over the intervening period. However, growth has been steady in recent years.
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